Mail Sport first revealed that the Magpies had submitted their fourth offer for the England international this morning.
But sources close to the deal are indicating that the package is still not suitable for Palace.
It is understood the latest offer comprises of a guaranteed £60million plus a further £5million in add-ons.
Palace want a minimum £65million for Guehi and it appears that chairman Steve Parish wants that amount in guaranteed money excluding additional bonuses which could take the deal closer to £70million.
It is understood Eddie Howe's side had submitted a package worth around £60m plus £5m in add-ons for Guehi, but that was still not suitable
Crystal Palace co-owner Steve Parish has previously told Guehi's suitors that they would need to pay 'super money' to sign the defender, who is valued at £65m
Newcastle are now contemplating walking away from the deal although it remains to be seen whether they try to revive a move for their No 1 target.
The new offer arrived after crucial talks between Newcastle sporting director Paul Mitchell and Palace co-owner Parish - who are handling negotiations for their respective clubs.
If the offer was successful it would have eclipsed the signing of Alexander Isak in 2022, who joined Newcastle in a deal worth around £60million, as the Magpies’ record signing.
Equally, Guehi’s exit would represent Palace’s most expensive departure overtaking Aaron Wan-Bissaka’s £50million move to Manchester United in 2019.